​Based on financial reporting for periods ending 6/30/15 and 9/30/15, Rapid Ratings has updated Financial Health Ratings (FHR) and Core Health Scores (CHS) on 1885 non-financial companies in 22 emerging market countries. The FHR reflects a company’s strength/vulnerability over the next 12 months, while the CHS reflects it over 24-36 months. Both run on a scale of zero/worst to 100/best.

The resulting observations, below, contain the most up-to-date signals available on national and sector trends among emerging market corporates. Of note is the strong average performance of the small Argentinian sample (FHR + 5, CHS +9) against a backdrop of modest declines in FHR averages for 15 countries and in CHS averages for 19 countries. Of note, as well, is the nearly universal retreat in average scores among the 29 sectors profiled.

The main question of an investor is the asset class to invest in and its respective weighting. The first dilemma comes with the approach to follow regarding the allocation: active (smart alpha via hedge funds) or passive (smart beta via ETFs). Investing in traditional indices is substituted by ETFs, a 25-year market with increasing popularity, which attracts $3 trillion and overtook the long-standing hedge fund industry in terms of assets under management in Q2 2015.

Stone Mountain Capital LTD is registered (FRN: 729609) as Appointed Representative with the Financial Conduct Authority (‘FCA’) in the United Kingdom.

The website content is neither an offer to sell nor a solicitation of an offer to buy an interest in any investment or advisory service by Stone Mountain Capital LTD and should be read with the Disclaimer.